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Cheri took out a loan for $14,350. The loan term was 3 years and Cheri’s payments were $625.77 per month. Since Cheri had filed for bankruptcy several years prior, she ended up paying a higher interest rate. With a better credit rating, her payments could have been $431.21 per month. How much more in interest did Cheri end up paying for her loan because of her bankruptcy?

a.

$5,836.80

b.

$2,334.72

c.

$8,624.16

d.

$7,004.16



The answer is D

Verified Answer :

Per month payment of Cheri = $625.77

So, total payments made in 3 years = @@MATH_TOKEN_0@@

As mentioned, Cheri had filed for bankruptcy several years prior, she ended up paying a higher interest rate. With a better credit rating, her payments could have been $431.21 per month.

So, If she would have paid 431.21 per month for 3 years, in total she would have paid =\(431.21\times36=15523.56\)

Hence, Cheri paid = \(22527.72-15523.56=7004.16\) more

So, Cheri paid option D = $7004.16 more.

deponow

Answer: It's D :)

Step-by-step explanation:

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